How to invest £20,000 in a Stocks and Shares ISA to aim for an 8.2% dividend yield

A Stocks and Shares ISA offers tax-efficient wealth building, and Investec (LSE: INVP) — newly promoted to the FTSE 100 — currently yields 6.3%, with analysts forecasting its dividend yield to reach 8.2% by end-2028. Investing the full £20,000 ISA allowance in Investec could generate £25,284 in dividends over 10 years and £212,146 over 30 years through compounding, potentially growing the holding to £232,146.

Why it matters: Key risks include tighter financial-sector regulation and lower interest rates squeezing margins, though analysts project 13.1% annual profit growth and a 15% return on equity by end-2028.